Each user has to login to the Coveo Cloud Org and create their own unique API Key for it to work. Having a unique Coveo.CloudPlatformClient.Custom.config per developer doesn't work with our local build/deployment processes and I'm sure there is a better approach.

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The EncryptionKeys is now located in the PropertyStore (Properties table of the Core database). Instead of copying the ConfigurationEncryptionKeys file, you need to copy the value from the database across all your environments. See the Scaling Guide.